An air-source heat pump in the UK typically costs £8,000–£14,000 installed in 2026, but the £7,500 Boiler Upgrade Scheme grant brings the price most households actually pay down to roughly £2,500–£6,500. Ground-source systems cost considerably more.
Heat Pump Costs UK 2026 prices at a glance
| System | Typical installed cost | After £7,500 grant |
|---|---|---|
| Air-source (flat / small home) | £8,000–£11,000 | £500–£3,500 |
| Air-source (average 3-bed) | £10,000–£14,000 | £2,500–£6,500 |
| Air-source (large home) | £14,000–£18,000 | £6,500–£10,500 |
| Ground-source | £18,000–£35,000 | £10,500–£27,500 |
What affects the cost?
Cost depends on your home size, the heat pump output needed, and how much extra work is required. Many homes need some radiator upgrades (£1,500–£3,000) to run efficiently at lower flow temperatures, and a new hot-water cylinder (£1,000–£1,500) if you do not already have one.
Grants and ways to save
The Boiler Upgrade Scheme gives a £7,500 grant towards an air-source heat pump in England and Wales; Scotland offers Home Energy Scotland grants and interest-free loans. Good insulation lowers both the install size and running costs, so it pays to insulate first.
Frequently asked questions
Is a heat pump cheaper than a new boiler overall?
After the £7,500 grant the upfront cost can be close to a premium boiler install, and because heat pumps last 15–20 years and can be cheaper to run on the right tariff, the lifetime cost often works out competitive.
What does the £7,500 grant actually cover?
It is a fixed contribution paid through your installer towards an air-source heat pump, deducted from your quote, you do not claim it back yourself.
Are there extra costs beyond the heat pump?
Often yes: radiator upgrades, a hot-water cylinder, and sometimes electrical or pipework changes. A good installer itemises these in the survey.
Do heat pumps cost more to run in winter?
They work harder in cold weather, but a correctly sized, well-installed system in an insulated home stays efficient. Running cost depends heavily on your electricity tariff.
How we work out these costs
Prices are compiled from published UK supplier price guides, manufacturer starting prices and public installation cost data, last reviewed June 2026. Figures are typical national ranges including standard installation unless stated; your own quote will vary by home, location and specification. Always compare at least three quotes.
Try our heat pump cost calculator, or see our full heat pump guide and our heating cost index.